CODORNIZMAINTENANCEASSOCIATION

NOTICEOFPROPOSEDRULECHANGESApril12,2016

Re:NoticeofProposedRuleChangesandRightofMemberstoCommentonSame.

ArchitecturalGuidelinesnew,CollectionPolicyrulechange,ElectionRulesnew,EnforcementProcedures&FinePolicyrulechange,GeneralRules&Regulationsrulechange,InternalDisputeResolutionPolicynew,MusicFestivalRegulationsnewandVehicle&ParkingRulesrulechange.

DearHomeowner:

OverthepastcoupleofmonthstheBoardofDirectorsandHOAManagementhavereviewedtheAssociation’svarioussetsofrulesandpolicies.Asaresult,enclosedinthismaileraresomewhollynewrulesandrevisionstothecurrentrulesalreadyinplaceforCodorniz.PursuanttoCivilCode§4360,thisnoticeshallincludethetextoftheproposedrulechangeandadescriptionofthepurposeandeffectoftheproposedrulechange.While the amountofchanges listedbelow and in theencloseddocumentsmaybearduous,Owners areencouragedtoreadthesechangesintheirentiretyastheywilldeterminewhatisandisnotpermittedwithinCodorniz.

ThefirstencloseddocumentistheArchitecturalGuidelines.ThepurposeofthispolicyistosetastandardforcurrentandfutureOwnerswithregardstoexteriorchangestotheirhomes.TheeffectofthispolicyistheAssociationandOwnerswillhavesetofwrittenguidelinesbywhichtofollowwhenconsideringproposedchangestotheexteriorofanOwner’sdwelling,aswellasproceduresandtimelinesfortheapprovalprocess.

RevisionstotheCollectionPolicyarelistedbelow.Thepurposeofthefirstrevisionistobringthepolicyup-to-datewithcurrent legislation,andtheeffect isguidelinesregardingthereceiptofPartialPaymentsandtheireffectonthedebtowed.

ThepurposeofthesecondrevisionnotedbelowistoclarifytheBoard’sauthoritytosuspendamember’srights fornon-paymentofassessmentsaspermittedby theCC&Rs,and theeffect isaclearstatementofpossibleconsequencesfornon-paymentofassessments.

Pleasereadthechangesbelow.Additionsareidentifiedindoubleunderlineanddeletionsareidentifiedinstrikethrough.

1. Section11isproposedtobemodifiedasfollows:

11. Payments After Lien. Once a delinquent account has been turned over to thelaw firm, THE ASSOCIATION WILL NOT ACCEPT ANY ASSESSMENT PAYMENTS. ANYSUCH PAYMENTS WILL BE FORWARDED TO THE LAW FIRM AND WILL BERETURNED TO THE OWNER UNLESS THEY ARE PAYMENT IN FULL OF ALLOUTSTANDING AMOUNTS, OR ARE PAYMENTS REMITTED PURSUANT TO WRITTENFORBEARANCE AGREEMENT.Partial Payments: Any assessment payments receivedfrom a delinquent Owner will be applied to that Owner’s account. However, absent

receipt of payment in full of all amounts due, the Association will proceed with anycollection action initiated against homeowner’s separate interest or the delinquenthomeowner personally pursuant to and consistent with the requirements of Californiastatutory and case law, unless the payments are remitted pursuant to a written paymentplan approved by the Board.

2. The followingsection is insertedasSection14. Allof the followingsections, including thecurrentSection14:ReleaseofLiensUponPayment,areconsecutivelynumberedbeginningat15.

14. Suspension of Membership Rights. Pursuant to notice and hearing, theAssociation may suspend an Owner’s membership rights and privileges, including, butnot limited to, the right to vote, use of common area facilities, and cabletelevision/internet services (if applicable), until the delinquency is paid in full.

ThenextencloseddocumentpresentedtoyouistheElectionRules.ElectionRulesarearequirementofCivilCode§ 5105,thepurposeoftheserulesaretosatisfythatcivilcoderequirement.TheeffectoftheseruleswillbeawrittensetofguidelinesbywhichtheAssociationandMembersshallfollowwithregardstomembercampaigns,votingandtheelectionprocessfortheBoardofDirectors.

ThenextencloseddocumentistheEnforcementProceduresandFinePolicy.Thispurposeoftherevisionsto the Enforcement Procedures is to streamline the Association’s enforcement process by removingredundant language and procedures. The effect is that Owners have a clear understanding of theAssociation’sprocessinadditiontotheOwner’srightsduringanenforcementprocess.

ThepurposeoftherevisionstotheFinePolicyistoallowtheAssociationwiththeabilitytofinetuneviolationfinestomatchtheoffence,inadditiontoallowingdailyfinesforcontinuingviolationsandshort-termrentaladvertisements. The effect ismore tools are available for the Boardwhen enforcing violations of theGoverningDocuments.

Thenextdocument isexcerptsoftheGeneralRuleshighlightingtheproposedchanges. Rulechangesaremarkedasfollows:Additionsareidentifiedindoubleunderlineanddeletionsareidentifiedinstrikethrough.

ThepurposeoftherevisionstoSectionA.AnimalControlistostrengthentheAssociation’spetrulesandOwner responsibility of their pets, aswell as tomake some grammatical corrections. The insertion atparagraph6 isnotanewrulebut included fromthepoolrules. Theeffect ispetswillberequired toberegisteredwiththeAssociationandtoprovidearulesetthatiseasiertoread.

ThepurposeoftherevisionstoSectionE.Conduct,Paragraph7isagrammaticalcorrection.Theeffectisaneasiertounderstandpossibleenforcement.

Thepurposeof therevisions toSectionG.Renters;Tenants is toclearup theAssociation’srestrictionsregardingshort-termrentalsinadditiontoestablishingthatthemereadvertisementsofshort-termrentalsisaviolation.TheeffectisOwnerscanhaveaclearunderstandingoftheshort-termrentalrestrictionsandclearguidelines for long-term leases thatarepermitted. Theadditionaleffect is thatadvertisements forshort-termleasesisaviolationaswellastheactualactofshort-termrenting.

ThepurposeoftherevisionstoSectionH.ResidenceistocreateuniformityviaclearguidelinesforForSaleandOpenHousesignage.TheeffectistheallowedlocationofForSalesignswillbeonthegaragedoor,whilehavingrealisticsigndimensionsandallowanceforOpenHousedirectionalsignage.

ThepurposeoftherevisionstoSectionI.Rubbish;Trashistoagaincreateuniformityinthecommunitywithstandardizedtrashbinsandlocations.TheeffectisOwnerswillberequiredtousetrashandrecyclebinsprovidedbyBurrtecandthebinswillneedtobelocatedwithinthescreenedenclosuresorthegarage.

ThepurposeofthenewSectionJ.Dronesistoestablishasetofrulesforanewhobby/businesstoolsothatitdoesnotdisturbthequietenjoymentofthecommunityorprivacyoftheResidents.Theeffectistheuseofdroneswillbe limitedtoonlybusinesspurposeswithstrictguidelinesandonlyupontheapprovaloftheBoard.

ThepurposeoftherevisionstoSectionK.Pool&SpaRules(formerlySectionJ) istoupdatethetermsrelatedtoserviceanimalsinordertocoincidewiththeADA.Inadditionthehealthregulationsruleismovedfromparagraph 6of SectionL (formerly sectionK)where it ismore fitting. The effect is theupdatedlanguagewould coincidewith theADA andsowouldnot cause anypossible conflict, aswell as amorepracticalruleset.

ThepurposeoftherevisionstotheArchitecturalCommitteeparagraphoftheEnforcementsection istoremove thenotion thatOwnerscouldapply for landscapemodifications. Theeffect isby removing thisnotion,OwnersmayunderstandthatlandscapemodificationrequestsarenotconsideredbyanArchitecturalCommittee.

FollowingistheInternalDisputeResolutionPolicy(IDR).ThepurposeofthisdocumentistoupdatetheIDRprocedurestoconformtonewlegislature.TheeffectisacurrentpolicythatisinlinewithCivilCode.

ThenextdocumentistheMusicFestivalRegulations.ThepurposeofthisdocumentistohaveasetpolicytocoverthemorestringentproceduresthatthecommunityhasobservedduringthefestivalweekendshostedbyGoldenvoice. Theeffect isthecommunitywillhaveawrittenpolicywhichResidentscanexpecttobeenforcedduringthefestivalweekendsinordertopreservethequietenjoymentofthecommunity.

Revisions to theVehicle &ParkingRules are listedbelow. Thepurposeof the set time restrictions forCommercialVehicles. Theeffect isCommercialVehiclesandPublicServiceswillbepermittedwithinthecommunityfrom7amto8pm.

ThepurposeofthesecondrevisionnotedbelowistosetatimeframefornewResidentstosettleintotheirhomesandbeginusingtheirgaragesforparking.TheeffectisonlyNewResidentswillbepermittedtousetheirgarageforstorageforalimitedtime.

Pleasereadthechangesbelow.Additionsareidentifiedindoubleunderlineanddeletionsareidentifiedinstrikethrough.

1. ThefollowingisinsertedasSectionA.GeneralRules,Paragraph11.Allofthefollowingsections,includingthecurrentParagraph11areconsecutivelynumberedbeginningat12.

11. Commercial Vehicles, including Public Services, shall be permitted within the Community onlybetween the hours of 7 AM to 8 PM, except in an emergency situation.

2. ThefollowingisinsertedunderSectionC.Parking,Paragraph12.

12. Any use of garage space which eliminates or prevents the parking of the number of four (4) wheelvehicles for which it was intended is prohibited. (i.e. a two car garage shall still allow for parking of twovehicles). The Association reserves the right to inspect garage space and to assess proper use with propernotice to, and with the cooperation of, the resident.

a. New Residents shall be permitted up to sixty (60) days after move-in to clear their garage of storeditems related to moving in.

PursuanttoCivilCode§4360,theBoardofDirectors isprovidingnoticeat leastthirty(30)dayspriortoadoptingthesenewrulesandrulechanges. Membersshallhavetherighttocommentontheseproposedrulechanges,acommentformisprovidedfortheuseofanymemberwhowishestosubmittheircommentsinwriting.TheBoardwilldecideonwhethertoadopttheserulechangesataBoardMeeting(datehasyettobedetermined)followingthisthirty(30)dayperiod. TheBoardwillconsideranycommentsmadebymembers inwritingor inpersonat thatyet tobedeterminedmeetingbeforemaking theirdecisiononwhethertoadopttheserulechanges.

Pleasefeelfreetomakeyourcommentsontheaboveandenclosedrevisions,commentscanbesentviaemailtosrodriguez@drminternet.comusing“CodornizRuleChange”as thesubject,via fax to(760)346-9918;Attn: SamRodriguez,orbymail toCodornizMaintenanceAssociation,P.O.Box14387,PalmDesert,CA92211. Pleasedate, identifyyourunit, and includeyourname and signatureon allwritten comments.Anonymous/unsignedcommentswillnotbeconsidered.

I/We comment on the proposed rule change as follows:

(Please attach additional pages as needed.)

Codorniz Address:

Owner Printed Name Signature /Date

Owner Printed Name Signature /Date

CODORNIZ MAINTENANCE ASSOCIATIONARCHITECTURAL GUIDELINES

APPROVAL PROCEDURES & STANDARDS

A. PURPOSE & INTENT

The purpose of the Architectural Guidelines is to standardize architectural designs and to ensure that theproposed plans are in conformance with, and are harmonious to, the exterior design and existing materials of thebuildings in the projects maintaining the highest quality of environment within the Codorniz MaintenanceAssociation. The procedure and standards are set forth in order to protect your investment and to promotespecial qualities in order to achieve a functionally and visually integrated development.

B. ARCHITECTURAL REVIEW COMMITTEE APPROVAL

1. The term “Improvement” is defined in Article 1, Section 23 of the Declaration of Covenants, Conditionsand Restrictions and Reservation of Easements (“CC&Rs”). Any condition or materials not defined within thissection shall become a matter of judgment on the part of the Architectural Review Committee (“ARC”) .

2. Pursuant to Article VIII, Sections 9 and 10 of the CC&Rs, there shall be no exterior structural alteration,construction, or removal of any structure or Improvement in the Project without the prior written approval of theBoard or its designated ARC. Owner shall first submit plans and specifications to the ARC and said plans shallbe approved in writing by the ARC and the City (as required). Owners must have the ARC’s approval prior tobeginning any improvements.

3. Alterations or modifications to the Common Area landscape, any structure or item in the Common Area,or the addition of any structure within the Common Area may not be done without the express written consent ofthe Board of Directors.

4. Pursuant to the CC&Rs, the Board of Directors has the authority to create an Architectural ReviewCommittee (“ARC”) and appoint committee members. In the event that no ARC exists, the Board of Directorsshall act as the ARC.

5. The ARC shall approve the plans and specifications submitted for its approval only if it deems that:

a. The improvement will not be detrimental to the appearance of the surrounding area of the projectas a whole;

b. The appearance of any structure affected thereby will be in harmony with surrounding structures;

c. The construction thereof will not detract from the beauty, wholesomeness and attractiveness ofthe Common Area, or the enjoyment thereof by the Owners;

d. The upkeep and maintenance thereof will not become a burden on the Association.

e. The plans and specifications substantially comply with these Architectural Guidelines.

6. In all cases, the Association CC&R’s and these Architectural Guidelines will apply. The property mustalready be in compliance with these Architectural Guidelines before an application will be considered.

7. Applications may only be submitted by Owners.

8. The ARC may request any additional information, plans and details as it reasonably sees fit to adequatelyreview the request for approval, including courtesy neighbor notifications.

9. Failure to obtain the required approvals before commencing work or making any Improvements is aviolation of the Association’s governing documents and may result in the modification or removal of theImprovement(s) at the Owner’s expense and/or further enforcement as provided in the Enforcement Procedures.

10. Any changes to the approved plans will require the approval of the ARC.

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C. PLAN SUBMITTAL PROCEDURE

Owners are encouraged to read the CC&R’s and these Architectural Guidelines in detail keeping in mind that theyhave the force of law to govern what you may or may not do. Approval of any project by the ARC does not waivethe necessity of obtaining any required City permits. Also, obtaining a City permit does not waive the need forARC approval.

1. Complete the information required on the Application Form.

2. Submit the Application Form, drawings/plans, specifications, and color samples of the requestedImprovement(s), and applicable fee to the address(es) listed on the application.

3. Drawings must be of sufficient professional quality, adequately detailed and dimensional to enable theBoard of Directors or ARC to determine the extent of the proposed improvement and their effect on existing andsurrounding structures. Simple drawings are adequate for minor improvements.

D. TIME TO RESPOND

1. Within forty-five (45) days of receipt of plans and complete application, the ARC shall review the plansand shall grant written approval, written denial, or a written request for additional information.

2. The forty-five (45) day timeline detailed above for the ARC’s response does not apply in the event of arequest for additional information or an incomplete application submittal. If additional information is requested,the forty-five (45) day timeline will start anew when the requested information is received.

3. In the event that a Design Review Application is denied, Owner has the right to appeal the ARC’sdecision to the Board of Directors unless the Board is acting as the ARC and has complied with the requirementsset forth in Civil Code §4765.

E. PROPERTY IMPROVEMENT REQUIREMENTS

1. The work must be performed in a manner consistent with the standards of the general dwellingconstruction and appearance of the Community. Any work considered to be of an unsightly, unfinished nature orof a lesser quality than the prevailing community standards will be required to be touched up, reworked to anacceptable level of appearance, or removed.

2. House, trim and door color detail must conform to the color palette approved by the Board of Directors. Inthe absence of a color palette, the original color scheme may be used.

3. Non-reflective natural tinting on the windows may be permitted. Paint, foil, newspaper, mirrored tint,sheets or similar materials shall not cover any windows except for those coverings described within the CC&Rs.

4. External improvements must be secure enough to prevent wind damage or accidents to the existingstructure, lot or to neighboring structures.

5. Until all of the Additional Property has been annexed to the Project and Declarant no longer holds title toany Lot in the Project, no alteration to the exterior of any residence which increases the habitable square footageof the residence may be made, including the addition of a balcony.

6. Installation of basketball rims or other sports equipment on the exterior of any building is prohibited.

7. No external fires (e.g., permanent or portable fire pits, fireplaces, chimneys, etc.) whatsoever, exceptbarbecue fires contained within receptacles designed for such purpose, are permitted.

8. Security cameras and security lighting shall not be directed towards windows of adjacent structures orotherwise intrude on the right to privacy and quiet use and enjoyment of the neighboring homes. Applications toinstall security cameras shall include a plot plan showing the camera’s location in relation to neighboringstructures, a property survey and specifications on the size, shape and angle of view of the camera.

9. Wiring for all external appliances shall be punched through the wall and run along the interior of theDwelling at the earliest possible location. External wiring shall be securely mounted on the Dwelling and paintedto match.

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10. Residents may place no more than three attractive wall decorations on the patio/courtyard walls. Patiowalls are defined as the walls within the actual confines of the Owner’s patio or courtyard and the roofedentrance, but not any other exterior wall or window.

11. Any conditions or material not defined within these Guidelines shall become a matter of judgment on thepart of the ARC or Board of Directors, unless described in the CC&Rs, or regulated by City, County orGovernmental codes. Refer to the CC&Rs for general use restrictions.

F. PROVISIONS FOR THE DISABLED

1. The modifications shall be consistent with the applicable building code requirements.

2. The modifications shall be consistent with the intent of otherwise applicable provisions of the CC&Rspertaining to safety or aesthetics.

3. Modifications external to the dwelling shall not prevent reasonable passage by other residents.

4. Modifications shall be removed by the Owner when the lot is no longer occupied by persons requiringthose modifications who are blind, visually handicapped, deaf or physically disabled or prior to the sale of thedwelling.

G. SOLAR PANELS

1. Any conduit affixed to the house shall be painted to match the surface to which it is attached.

2. All mechanical equipment exposed to the exterior shall not be visible from the street.

3. The Owner shall be required to provide engineering drawing(s) showing the layout of the electrical solarenergy panel systems and all related components, including the panel-module arrays with required minimumsetbacks and the planned placement of all connections, inverter, and mountings. The layout must show theplacement of the panels with respect to the complete building roof plan.

4. The Owner’s application must show details on the method of attachment of the solar modules to the roof,including structural anchoring to building and roof sealing method. Anchors must set back from the edge of thepanels a minimum of six (6) inches. Solar panels must not interfere or negatively impact the normal functions ofroof vents, gutters or other roof attachments.

5. Any proposed solar energy system must be contained to the roof outline of the residence which it isintended to service. Solar energy systems may not extend beyond the roofline and/or overhang any portion of theroof. No solar energy system may be installed or proposed on the roof of or over another residence.

6. Proposed solar energy systems should be designed so that they are concealed from the Common Areasof the Association to the greatest extent possible.

7. All solar panels must be contiguous and non-reflective.

8. Solar energy panel(s) must be installed parallel to the roofline and elevated no more than twelve (12)inches measured from the roof surface to the top exposed surface of the panels.

9. Solar panel module frames and voltaic array must be in a bronze or black finish.

10. Exterior electrical conduits must be concealed or covers installed so as to comply with all relevant city,county, state and/or federal regulations and/or codes, and must be aesthetically consistent to blend with theexisting building architecture. All underground electrical must be housed in code-approved metal conduit aminimum of twelve (12) inches below ground. The location of all electrical lines must appear on the engineeringdrawing(s).

11. DC/AC inverter boxes must be installed in compliance with all relevant city, county, state and/or federalregulations and/or codes, and must be out of view, either inside the building or near ground level and hidden bylandscaping.

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H. SATELLITE DISHES AND ANTENNAS

Subject to all applicable federal, state and local laws, installation of a satellite dish, antenna or other transmittingor receiving device (each, a “Device”) shall be subject to ARC approval and must comply with Article VIII, Section18 of the CC&R’s. The installation of a Device shall be deemed approved by the ARC if the followingrequirements (“Satellite Installation Requirements”) are satisfied:

1. The “Notice of Satellite Dish Installation” shall be completed and mailed to the Community AssociationManager prior to installation of the Device.

2. The Device may not exceed one (1) meter (approximately 39 inches) in diameter.

3. The Device should be located in less visible areas, reasonably screened from the view of any street orcommon areas, and not exceed the ridgeline of any roof (e.g., the Device should be installed either on the side orrear of the Dwelling and as far out of view of any street or common area as possible). No roof mounting ispermitted unless an application is submitted to and approved by the ARC.

4. All wires and cables shall be installed within the Dwelling wall or securely mounted on the Dwelling andshall not hang or dangle. Wiring should be run along corners of the Dwelling and fascia board to the nearestentry location and should be painted to match the adjacent surface where visible on the exterior of the Dwelling.

5. After completion of installation, a Notice of Completion shall be submitted to the ARC with a photo of theinstalled Device.

6. All devices and wires must be removed and all holes patched and painted prior to the selling of the unit.

If an Owner is unable to satisfy the Satellite Installation Requirements, the Owner must submit an application tothe ARC prior to the installation of the Device along with an explanation of why the Satellite InstallationRequirements cannot be satisfied.

I. CONTRACTORS

1. Owners are responsible for the actions, violations, damage, etc. of their contractors.

2. No dumping debris of any kind at Association is allowed.

3. Excess dirt, construction debris, or trash shall be cleaned up on a daily basis and removed from thedevelopment.

4. The street shall not be used for storing any kind of construction materials, unless Owner has received theexpress written consent of the ARC and materials are cleaned up daily and not stored on the street overnight.

CODORNIZ MAINTENANCE ASSOCIATIONELECTION RULES

A. PURPOSE & INTENT

The purpose of the Election Rules is to comply with the requirements set forth in Civil Code § 5105.

B. CAMPAIGN PROTOCOLS

1. To the extent any candidate or member is provided access to Association media to advocate a point ofview, for purposes that are reasonably related to that election, all candidates and members shall be provided equalaccess to Association media, newsletters, websites or mailers for purposes that are reasonably related to theelection.

2. If access is provided to candidates or members, the Association shall not edit or redact any content fromthese communications. The Association is not responsible for the content or any campaign communications madeby candidates.

3. Candidates, including those who are not incumbents, and Members advocating a point of view reasonablyrelated to the election, shall have equal access to common area meeting space, if any exists. This access shall beprovided at no charge for purposes reasonably related to the election, except that the Association may requirecleaning/security deposits or other procedures to reserve common area meeting spaces. With the exception ofballoting material or in order to comply with the equal access requirement contained in Civil Code § 5105,Association funds shall not be used for campaign purposes in connection with any association board election.

C. CANDIDATE QUALIFICATIONS

1. Qualifications for candidates to the Board shall include:

a. With the exception of an authorized agent or representative of the Declarant, candidates must beMembers of the Association.

b. Candidates must be in compliance with the Association’s governing documents.

c. Candidates must be current in the payment of all Association assessments, late fees, interest,collection costs, fees or other financial obligations for the six (6) months immediately preceding the date ofthe election at which the candidate is being considered for election to the Board.

d. Candidates must not have any outstanding fines/penalties or suspension of membership privileges.

e. Candidate must be at least twenty-one (21) years or older.

f. With the exception of the Declarant, at no time shall more than one (1) of the Owners of a jointlyowned Lot serve concurrently as Directors.

2. Procedures for nomination of candidates to the Board shall allow a member to nominate himself or herselfand shall be consistent with the governing documents.

D. VOTING

1. All membership voting requiring the use of secret ballots as per Civil Code § 5100, shall be conducted inaccordance of the ballot and voting procedure set forth in Civil Code § 5115, and any related or successor statute.

2. The voting power of each membership shall be as described in the Association’s Bylaws and/or CC&Rs.

3. Qualifications for voting shall include, but not be limited to, the following (as further described in the Bylaws):

a. Member must be an Owner of record of a Lot and the Member’s name must appear on the officialrecords of the Association as of the record cut-off date established in the Bylaws.

b. Member must not be delinquent in the payment of any Association assessments, late fees, interest,collections costs, fees or other financial obligations imposed by the Association.

c. Member must not be in violation of the Association’s governing documents.

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d. Member’s membership/voting privileges have not been suspended.

4. The authenticity, validity, and effect of proxies submitted by Members shall be determined by the Inspectorof Elections.

5. Proxies may not be used in lieu of a ballot. Proxies may not be revoked once a proxy holder has submitteda ballot to the Inspectors of Election.

6. Once a ballot has been received by the Inspector of Elections, it shall be irrevocable. If a Member submitsboth a proxy and a ballot to the Inspector of Elections, the ballot will supersede the proxy.

7. The voting period for elections shall commence when the notice of the meeting and/or ballots have beenmailed to all Members and shall terminate as stated in the notice and/or ballot or as determined by the Inspector ofElections consistent with the governing documents.

8. Management will provide the Inspector of Elections with a list of those members whose rights and privilegeshave been duly suspended after notice and hearing and who are not entitled to vote at the membership meeting.

E. INSPECTORS OF ELECTION

1. Inspectors of Elections (i.e., independent third parties) shall be appointed by the Board. The followingpersons may not serve as Inspectors of Elections: Board members, candidates for the Board, persons who arerelated to the Board members or persons who are related to candidates for the Board. The Association’saccountant, association manager, attorney or other professional hired by the Association may serve as Inspectorsof Elections, or the Association may appoint another independent party. If an independent party serves as Inspectorof Elections (i.e., not an Association member), that party may be compensated for the services performed. Membersof the Association shall not be entitled to compensation.

2. Inspectors may appoint and oversee additional independent third parties to verify signatures and to countand tabulate votes. Votes shall be counted and tabulated by the Inspectors of Elections or their designee(s) inpublic at a properly noticed open meeting of the Board of Directors or members. Any candidate or other membermay witness the counting and tabulation of the votes. To ensure anonymity of the voting, members must stand atleast five feet away from the Inspectors of Elections or their designee(s) during the tabulation process. Membersare prohibited from speaking to the Inspectors or their designee(s) during the tabulation process or interrupting thetabulation process in any way.

3. Inspectors shall retain the ballots at a location they designate for the period identified in Civil Code Section5125, or any successor statute. After this period has expired, the Inspector of Elections shall transfer the ballots tothe Association.

4. If there is a recount or other challenge to the election process, the Inspector of Elections shall, upon writtenrequest, make the ballots available for inspection and review by a Member or his or her authorized representative,at a location and time as determined by the Inspector of Elections. The recount shall be conducted in a mannerthat preserves the confidentiality of the vote. The candidate or Member requesting the recount shall be responsiblefor any and all costs related to the recount, including compensation to the Inspector of Elections, if applicable.

F. ADJOURNED FOR LACK OF QUORUM

1. If any membership meeting is adjourned to another date due to lack of quorum, ballots already received bythe Inspectors will be valid for adjourned meetings.

2. The ballots will be counted during a properly noticed open meeting of the Board or during a membershipmeeting.

CODORNIZ MAINTENANCE ASSOCIATIONENFORCEMENT PROCEDURES / FINE POLICY

ENFORCEMENT PROCEDURES

A.The Association and/or any Owners, has the right to enforce the Association’s GoverningDocuments. This right includes requesting the violator to cease the offending action, taking legalaction against the violator and making a complaint to the Board of Directors in care of theManagement Company. Once a resident gives the Board of Directors a written complaint that arule has been violated, the Board will investigate the allegation and may take action against theoffending resident, including but not limited to fining, assessing, if appropriate, or instituting legalaction. However, nothing in this section obligates or requires the Board of Directors or authorizedcommittee to take any action against an individual resident. In the event the circumstanceswarrant, the Board may take more immediate action, such as initiating an action in the SuperiorCourt, to secure an Owner’s compliance with the Governing Documents.

B. Costs Incurred Regarding EnforcementAll costs, including but not limited to court costs, reasonable attorneys’ fees and managementfees, and interest at the legal rate, incurred in enforcing the Governing Documents shall be borneby the responsible individual Lot Owner. Non-payment of these costs of enforcement may resultin a Compliance Assessment being levied against the individual Lot Owner and may be collectedin the manner set forth in the Association’s CC&R’s.

C.A. Due ProcessPrior to the imposition of any fine, Compliance Assessment or suspension of rights/privileges, thehomeowner Owner shall be given notice and an opportunity to submit a written letter, or appearin person or in writing, before the Board of Directors or appropriate committee in accordance withCivil Code § 5855, or any successor statute.

D.B. Enforcement ScheduleGenerally, though not necessarily, the Association will adhere to the following schedule inenforcing the Governing Documents:

1. First Offense: Warning Letter/Vehicle Citation/Hearing Notice and request tocorrect violation.Violation Letters: Possible imposition of a fine and/or, Compliance Assessmentto reimburse the Association for costs to compel compliance, and suspension of rights andprivileges. Institute Alternative Dispute Resolution and/or Internal Dispute Resolution. Filing oflawsuit.

2. Second and/Uncured Subsequent Offenses: Notice of Hearing: ViolationNotice/Vehicle Citation/Hearing Notice; Possible imposition of a fine and/or, ComplianceAssessment to reimburse the Association for costs to compel compliance, and suspension ofrights and privileges. Institute Alternative Dispute Resolution and/or Internal Dispute Resolution.Filing of lawsuit.

3. Third Offense: Hearing Notice; Possible fine and/or, Compliance Assessment,suspension of rights and privileges,. Possible tow of the vehicle in violation. Institute AlternativeDispute Resolution and/or Internal Dispute Resolution. Filing of Lawsuit.Hearings: Hearings willbe conducted in executive session. The Owner will have an opportunity to present his/her caseand may present evidence and witnesses. The Board shall not be required to disclose the identityof person(s) who submitted a complaint or otherwise brought the matter to the Association’sattention. Members may submit their defense and notify the Owner in writing of the Board’sdetermination, and the reasons for any disciplinary measures, within fifteen (15) days.

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E. Depending on the severity and frequency of the violation and the violator, the enforcementprocedures(s) and/or enforcement remedy/ fine amounts imposed may vary. In extreme cases,the fines may be substantially higher.

FINE POLICY

Fines shall be in addition to any Compliance Assessment that may be levied to reimbursethe Association for expenses and costs incurred to compel the Owner’s compliance

F.A. Violations Fines - of Generally (Non-Leasing) Restrictions

1. First Violation Fine: Up To $ 250.00

2. Second\Uncured Violation Fine: Up To $ 500.00

3. Third\ Uncured & More Violation Fines: $ 700500.00-$1,500.00

4. Daily Fines for Continuing Violations: The Association’s notice of hearing mayprovide that the Board will consider imposition of a fine on a continuing daily, weekly, ormonthly basis. If such continuing fine is imposed by the Board after notice and hearing,the responsible Owner will be liable for the amount of the fine imposed for each day, week,or month, as appropriate, that the violation continues unabated. Owners subject to acontinuing fine are responsible for notifying the Association promptly upon bringing theirproperty into compliance so that the Association can confirm that the Owner has cured theviolation and otherwise come into compliance and halt future recurring fines.

B. Violation of Leasing Restrictions / Rentals Less Than 30 DaysViolation Fines RentalRestriction Violations

1. First Violation Fine: $1,000500.00

2. Second Violation Fine: $3,000.00

3. Third Violation Fines: $5,000.00

3.4. Daily Fine for Rental Advertisement Violations: The Board may impose a dailyfine of $50 for any advertisement of short term, transient, or vacation leasing.

Ongoing violations that are not corrected by the Owner after imposition of a fine will be deemedto accumulate on a monthly basis.

Codorniz Maintenance AssociationEnforcement Procedures & Fine Policy

EXHIBIT “B”CODORNIZ MAINTENANCE ASSOCIATION

GENERAL RULES

A.   ANIMAL CONTROL

1. Each Owner shall be permitted to maintain on the premises a combined maximum total of two (2)domesticated cats and/or dogs, but in no event more than two (2) dogs.

1.2. All pets must be registered with the Association.  A form is provided for this purpose which may berequested from the Management Company.  It is the Owner’s responsibility to ensure registration of a tenant’s pets.

2.3. An animal may only enter the Common Area or Association Property while on a leash not to exceed six (6)feet in length that is held by a person capable of controlling it.  Retractable leashes are not permitted.

3.4. No dog or pet of any kind shall be tied up in the Common Areas.

5. Any and all damage to the Common Areas caused by any animal is the responsibility of the Owner of thatanimal.

4.6. Pets are not permitted within the fenced pool areas, gym, or on the tennis court.

5.7. Owners are solely responsible for immediate clean-up of their pet’s excrementof the Common Area due totheir pet, and shall dispose of droppings in the Owner’s covered waste receptacle.

6.8. Owners shall not allow pets to bark excessively or otherwise make noise or engage in behavior so as tounreasonably disturb surrounding residents, whether the pet is inside or outside the Residence.

7.9. Small domesticated animals (e.g., birds, hamsters, fish, turtles) may be kept in a contained environment(cage or aquarium), provided they are not kept, bred or raised for commercial purposes.

8.10. The Board may prohibit any animal which exhibits aggression, makes unreasonable noise, or is otherwisedetermined to constitute a nuisance in the sole opinion of the Board.  The Board shall afford the Owner notice, andan opportunity to be heard before the Board, prior to determining to prohibit the Owner from keeping such animal.

E.   CONDUCT

7.          The Owner of each Lot shall be liable to the Association for all damage to the Common Area or to anyimprovements thereon or thereto, caused by Owner, Owner's family, tenants, guests, or invitees.  After due process,the Board may levy a Compliance  Assessment against an Owner and/or Lot  to reimburse the Association for costsincurred  in  repairing  any  damage  to  the  Common  Area  for  which  the  Owner  was  found  responsible.    SaidCompliance  Assessment shall be collected in the same manner as regular and special assessments, and may beliened and foreclosed enforced as a lien against the Residence with the possibility of foreclosure.

G.   RENTERS; TENANTS

1.          Residences may be leased or rented only for periods of  thirty (30) days or more.  Residences may notprovide any services normally associated with hotel or transient occupancy.

2.          Subleasing is not permitted.  An Owner may only lease the entire Residence.  Tenants may not furthersublet the home.

3.          Rental advertisements, whether online, in print, or on any other media, that advertise a property for leasefor less than thirty (30) days are prohibited.  Rental advertisements that advertise less than the entire residence forlease or that offer to sublease a property are also prohibited,

Codorniz Maintenance CorporationGeneral Rules

1.4. All lease/rental agreements for any Residence within the Project shall be in writing and contain a provisionbinding the renter(s) to the terms and conditions contained in the Association's Governing Documents, including,without limitation, these Rules and Regulations.

5. Owners shall provide the Association a copy of the written lease agreement and completed Renter & TenantRegistration Form at least seven (7) days prior to the commencement of the leasebe required to notify the Board ofDirectors of an intent to lease the Residence at least seven (7) days in advance, including  length of the lease,names of the occupants of the rented/leased Residence, relationship to one another, number of occupants, andautomobile information. Owners are required to provide each tenant a copy of the Governing Documents CC&Rsand Rules & Regulations. (Copies may be obtained from the Management Office for this purpose.)

2.

3.6. Each Owner shall be liable to the Association for any damage to the Common Area or to Association-ownedproperty caused by Owner’s tenants.  Failure of any tenant to comply with these Rules may subject the Ownerand/or tenant to disciplinary action.

4.          No Residence may be leased or rented for a period of less than thirty (30) days.

H.   RESIDENCE

10.        Real Estate and Security Signs.  Real estate and security company signs which do not comply with thefollowing criteria require prior written approval from the Board of Directors. The following shall be permitted:

a.          For Sale, For Lease or Open House signs must meet the requirements of the City of La Quinta, aswell as the following criteria:

i.           Size: Up To 1224" x 1218”ii.          Color: Tan with brown letteringiii. Material: MetalWeather Proof Material

b.          One (1) For Sale sign may be affixed to the center of the garage door of the Residence in a fashionthat does not damage the paint or is unsightly.

b.c. Signs must be of professional quality from a qualified sign contractor.

c.d. One (1) Open House sign (meeting the criteria in Section 9.j.i.(a) above) may be displayed on theCommon Area, street side of adjacent to the Residence, no higher than 3 ft. from the ground.  One (1)Open House sign may be placed in the common area at the entrance, outside the gates.  Up to two (2)directional Open House signs may be placed inside the gates leading to the home.  All signs must meet thecriteria in Section H.10.(a) above.

d.e. Two (2) Security System signs may be displayed on the Common Area adjacent to each Residenceproviding notification that the Residence is serviced by a security system. The signs must be freestandingand not more thant three feet (3') from the exterior of the Residence’s main entrance. The top of the signsshall not be higher than five feet (5') above the ground and shall not be larger than 12" x 12" in size.

I.   RUBBISH; TRASH

1. Trash and recycling must be deposited in the portable bin trash containers provided by Burrtec and kept inthe garage or within the screened enclosures located in the shared Common Area located in-between houses orother nearby designated location, out of sight of other Lots and Common Area.

1.2. Trash and/or recycling bins may be shared in order to maximize the space available in the screenedenclosures at the mutual agreement of both Residents who share such enclosure.  Owners are permitted to requesttheir  own  bins from  Burrtec  provided that  they  will fit  within the  shared  enclosure,  allowing  the  other  Residentadequate space for their own bin, or the bins are kept within the garage and brought out to the shared enclosure at

Codorniz Maintenance CorporationGeneral Rules

the beginning of the day of the designated trash pick-up and put away at the end of the day of the designated trashpick-up.

2.3. Codorniz has white-glove collection, which means there is no need to roll containers curbside.

3.4. No unreasonably offensive odor may be permitted to arise from any area so as to render the properties orany portion thereof unsanitary, unsightly, offensive or detrimental to any other property in the vicinity thereof or toits occupants.

5. Large bulky items, such as cardboard boxes, are unacceptable for routine collection unless broken down.Owners/Residents shall make arrangements with Burrtec to collect any such bulky items. Loose, unconfined trashof this nature will  usually require special preparation by the Owner, and must be picked up within a reasonableamount of time so that the trash does not remain uncollected.

4.6. Any arrangement with Burrtec which would require a dumpster or any special container must be reportedto Management in advance.  Said container may not be permitted to remain within the Community for periodsexceeding seven (7) days, and must be positioned in accordance to the Vehicle and Parking Rules.

5.7.       Outside bBurning of trash or garbage outdoors is prohibited.

J.   DRONES

1.          Drone use may be permitted for business purposes, and only with the express written consent of the Boardof Directors.  Recreational drone use is prohibited.

2.          Drone operators must apply to the Board in writing for consent to operate drones within the Community.When applying, operators must state their business purpose, objective and the nature of their work.

3.          Drone operators must comply with all City, State and Federal regulations.

4.          Drones  may  not  fly  below  the  roofline  of  any  structure,  point  towards  any  doors  or  windows  of  theresidences, or otherwise interfere with other residents’ privacy or quiet use and enjoyment of the Community.

J.K. POOL & SPA RULES

22.        No pets are allowed in the pool/spa area, other than assistance service animals such as seeing eye dogsasdefined and regulated by, the Americans with Disabilities Act.

23. No wheeled devices, such as bicycles, skateboards, or the like are permitted in the pool/spa area.

23.24. Health regulations governing public pools, and outlined above, must be strictly followed.

K.L. POOL FURNITURE AND EQUIPMENT

1.          Health regulations governing public pools and outlined above must be strictly followed.[JDB1]

ENFORCEMENT

Architectural Committee - The Architectural Committee is charged with primarily reviewing and approving proposedlandscape and architectural modifications, and recommending enforcement action.

CODORNIZ MAINTENANCE ASSOCIATION

INTERNAL DISPUTE RESOLUTION POLICY

Either party to a dispute within the scope of Civil Code Section 5900 may invoke thefollowing procedure:

1. The party may request, in writing, that the other party meet and confer in an effortto resolve the dispute.

2. A Member of the Association may refuse a request to meet and confer. TheAssociation may not refuse a request to meet and confer.

3. The party receiving a request must respond within a reasonable time and in noevent later than 15 business days after the request is mailed. If a Member does notrespond within this time frame that Member will be deemed to have rejected therequest.

4. If the request is accepted, the parties shall, in good faith, coordinate the meeting totake place within 30 days of acceptance at a mutually convenient time and place.If, through no fault of the Association, the parties are unable to schedule the meetingwithin this time frame, the requirements of Civil Code Section 5900 et. seq. will bedeemed to have been met unless the parties mutually agree to extend this timeframe.

5. The Association's board of directors may designate a member or members of theboard to meet and confer with the Member. The Association’s community manager,relevant expert and/or legal counsel may attend the meeting at the Association’ssole cost. If the Association intends to have legal counsel present at the meeting,the Member shall be advised at least 10 days prior to the meeting.

6. The Member may be assisted at the meeting by an attorney or other person at theMember’s sole cost. If the Member intends to have an attorney present at themeeting, the Member must advise the Association at least 10 days in advance of themeeting. If the Member does not provide this required notice and attends themeeting with an attorney, the meeting will not take place. Thereafter the Associationwill have the right to either reschedule the meeting or determine the requirementsto have been fulfilled without a subsequent meeting.

7. At the meeting the parties shall explain their positions to each other, and confer ingood faith in an effort to resolve the dispute. Discussions at the meeting are notconfidential unless all attendees sign a confidentiality agreement.

8. A resolution of the dispute reached at the meeting binds the parties and is judiciallyenforceable if the following conditions are satisfied:

i. The agreement is not in conflict with the law or the GoverningDocuments of the Association.

ii. The agreement is either consistent with the authority granted by theBoard of Directors to its designee(s) or the agreement is ratified by theboard of directors.

iii. The agreement is in writing and is signed by all parties, including theBoard designee(s).

9. A member of the Association may not be charged a fee by the Association toparticipate in the IDR process. The parties may mutually agree to make use of localdispute resolution programs. If these programs are agreed to by the parties, theparties shall split the costs thereof.

10. The Association is not obligated to agree to use a mediator for IDR or to contributetowards any of the costs of that mediator and will not do so, unless agreed to inwriting, in advance.

EXHIBIT “E”CODORNIZ MAINTENANCE ASSOCIATION

MUSIC FESTIVAL REGULATIONS

Historically, during the month of April, there is a surge in the number of guests at Codorniz, as well as anincreased number of gatherings, parties, etc. due to the music festivals at the neighboring polo grounds. Thepurpose of these Music Festival Regulations is to help safeguard the quiet enjoyment of the community by allOwners during the music festivals.

The following Regulations regulate vehicle parking and Common Area amenity use only during the month ofApril. They are intended to supplement the existing Rules and Regulations, which remain in effect. However,in the event of a conflict, the below parking Regulations will control during the month of April only.

A. GENERAL

The Association, Management and community patrol officers may enforce restricted entry to the Community andrestricted use of the Common Area amenities during the month of April. Common Area amenities shall include,but are not limited to, the pool and pool deck, barbeque, workout room, and tennis courts

B. PASSES

1. Each Codorniz residence will be issued a Credential Packet, which will contain two (2) resident and one (1)guest vehicle pass. Passes are to be used to identify vehicles upon entry and to permit use of the CommonArea amenities, as further described within the Credential Packet.

2. Use of a resident pass is restricted to Owners and/or an Owner’s tenant. Owners must provide a copy of acurrent valid lease agreement for their tenants to Management.

3. It is the responsibility of each Owner to manage the allocation of their passes for the duration of thefestival(s). Lost or stolen passes will not be replaced.

4. Access to the Community shall be restricted to vehicle(s) and person(s) displaying the appropriate passes.In the absence of a pass, the name of the Owner of record and Codorniz Address which they are requestingto visit must be provided before access will be granted.

5. Hours of operation for the pool, including amenities within the pool gates will be: 8:00 am – 8:00 pm.

6. Use of the Common Area amenities shall be restricted to person(s) correctly displaying the pass providedby the Association.

7. Misuse of a pass and/or violation of any of the Association’s Rules and Regulations, including theseRegulations, may result in a pass being revoked and confiscated by the Association or its community patrolofficers. Passes that are revoked may not be reissued for the duration of the festival(s).

8. Issuance of a Credential Packet is a privilege. The Association reserves the right to withhold a CredentialPacket from any Owner for non-payment of their HOA Assessments and/or any continuing violation of theGoverning Documents.

C. VEHICLES AND PARKING

1. Any recreational vehicle wishing to enter the community will be granted access only if a titled homeowner,who must show a valid ID, is driving the vehicle. Upon entry, the RV will be allowed to park in the CommonArea in order to load and unload for a maximum of 2 hours, and will not be allowed to park overnight.

2. No vehicles with trailers in tow will be allowed access into the community, unless for the purposes of aresident moving in or out. Owners shall provide Management advance notice of forty-eight (48) hours ofany need to move in or move out so that community patrol officers can be properly advised.

3. In the event an Owner is granted access to allow a trailer into the community for the purposes of move in ormove out, the trailer shall be permitted to park only during the hours of 7 a.m. to 8 p.m.